> For the complete documentation index, see [llms.txt](https://docs.defive.com/overview/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.defive.com/overview/defi/yields.md).

# Yields

Yield farming is one of the most rewarding features of DeFive, offering users the opportunity to earn **FIVE tokens** by providing liquidity to the platform. As an evolution of WigoSwap, DeFive’s farming mechanisms are designed to maximize rewards while maintaining fairness and sustainability.

By adding liquidity to DeFive, users earn **LP Tokens** that can be staked to generate FIVE rewards. While yield farming generally offers higher returns than staking FIVE directly, it comes with the risk of **Impermanent Loss**—a concept that’s easy to understand with proper guidance.

#### Key Features of Yield Farming on DeFive

1. **Earn FIVE Rewards**\
   Users who stake LP Tokens in DeFive farms earn **FIVE** as a reward. Farms are incentivized with fair APRs, governed by the **DAO and veFIVE holders**, ensuring a transparent and community-driven reward system.
2. **Fair and Sustainable Emissions**\
   DeFive’s yield farming features upgraded emission rates:

* **Up to 70% of emissions (minted FIVE tokens per second)** are allocated to liquidity providers, creating a robust incentive structure.
* Emission rates are capped at **5 FIVE/sec**, with the ability to adjust emissions dynamically for platform sustainability.

3. **Risk vs. Reward**\
   While yield farming offers higher rewards compared to staking, users should be aware of **Impermanent Loss**. This occurs when the value of tokens in a liquidity pool fluctuates, affecting the final value of your assets. Learning about this risk and managing it effectively can help users make the most of farming opportunities.

#### How to Use DeFive Yield Farms

**Step 1: Add Liquidity**

1. **Navigate to the “Liquidity” section**:
   * Select the token pair you want to provide liquidity for (e.g., FIVE/S).
2. **Deposit tokens**:
   * Enter the amount for each token and approve the transaction.
3. **Receive LP Tokens**:
   * After depositing, you’ll receive LP Tokens representing your share of the liquidity pool.

**Step 2: Stake LP Tokens**

1. **Go to the “Farms” section**:
   * Find the farm corresponding to your LP Tokens (e.g., FIVE/S farm).
2. **Stake LP Tokens**:
   * Approve the transaction and stake your LP Tokens in the farm.
3. **Start earning FIVE**:
   * As you stake LP Tokens, you’ll begin earning FIVE rewards.

**Step 3: Harvest and Manage Rewards**

1. **Harvest rewards**:
   * Visit the farm dashboard and click “Harvest” to collect your FIVE tokens.
2. **Reinvest or use rewards**:
   * Stake harvested FIVE in **veFIVE staking** to gain governance power, or use them elsewhere in the ecosystem.

#### Benefits of Yield Farming on DeFive

1. **High Rewards**\
   DeFive’s farms are designed to offer competitive APRs, giving liquidity providers meaningful returns for their contributions.
2. **Fair Emissions**\
   Up to 70% of all new FIVE emissions are dedicated to liquidity providers, ensuring rewards are aligned with user contributions and ecosystem needs.
3. **Governance Influence**\
   veFIVE holders have a say in determining farm APRs, listing new farms, and de-listing underperforming ones, creating a platform shaped by its community.
4. **Easy Entry and Exit**\
   With a user-friendly interface and seamless integration, DeFive makes it simple to participate in yield farming and manage your LP Tokens.